Posted To The Social Credit Google Group 10/09/2017

Steve Keen has re-discovered the social credit insight via the opposite perspective of macro-economics in his realization that whenever borrowing stops increasing the economy slumps. What he apparently hasn’t realized is that this proves Social Credit’s A + B insight, as even at 0% interest the continual build up of private debt overwhelms the ability to service that debt. So you’re stuck between a rock (continual borrowing) and a hard place (recession/depression if you stop borrowing). Douglas originally discovered it via the micro-economic cost accounting perspective and then doing the calculus on the relationship between total individual incomes and total costs and so total prices.

However, the even more subtle insight is that a mere stochastic (statistical) equilibrium of costs and prices is not the answer as the temporal universe is not characterized by and abhors equilibrium. Consequently, and in order to overcome the scarcity ratio of Social Credit and integrate with the actual nature of the temporal universe (continual free flowing process), both of the policies of Social Credit must be genuinely abundant so as to invert the above ratio…..which also mirrors the signature of paradigm change which is inversion of position and primacy of the old and new paradigm (helio-centric inversion of the position of the earth and sun/inversion of scarcity ratio making it an abundance ratio of individual incomes to costs/prices).

IMO all of Public Banking, MMT, Keen’s Disequilibrium theories and Michael Hudson’s and David Graeber’s focus on the problematic nature of the business model of Finance want to move together in the correct direction. They just need a full and clear philosophical vision in order to do so.
Yes Kyunkyun, because there are inherent and inevitable costs like depreciation, the withdrawal of profits and savings and the re-investment of same into subsequent productive cycles and the freedom and general tendency to raise prices in profit making systems that cannot be effectively compensated for…except via a sufficient monetary and price gift with the dual policies of Social Credit. If we could cost cut our way out of the problem then the Austrian obsession with deflation would work, but it won’t because we’d run out of income and 100% of businesses would go bankrupt way before an equilibrium could be attained. And just injecting money into the economy via enterprise only re-initiates the gap. Even a large direct dividend ALONE would not do it, it requires the costless and cost reducing policy of the discount.
Also the diminution of money via the flow of taxes and additional costs of government bureaucracies. And time itself and its lagging effects on purchasing power contributes to the gap. The word “eventually” in macro-economics and money systems where any gap exists has no meaning, only the moment to moment ratio of total costs/prices and total INDIVIDUAL income.

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